APUSH Unit 6 Business Terms – Flashcards

controlling to a point of a monopoly one level of the production of a product or service (Rockefeller)

controlling the production and sale of a product or service from it's inception as a raw material through final retail consumption (Carnegie)

when a group of companies "pool" together to buy raw materials and then agree to fix prices (and divide territories up between them) and not try to compete with each other; maintains artificially high prices (railroad pools of late 1800s)

several companies/producers agreeing to non-competition arrangements, prices are fixed, and a "trust monopoly" is created, the participants must "trust" that each will maintain the "trust" and not openly compete with each other (Morgan)

founder of Bethlehem Steel and creator of "H" beam used in construction of high rise buildings; allowed buildings in cities to grow higher as it supported more weight

struck rich in the gold fields, became a railroad baron with the money; helped to found the California College named after his dead son - Stanford University

founder of the Great Northern Railroad (second transcontinental railroad)

world's first billion $$ company; founded by Elbert H Gary and JP Morgan; built 1st corporation town of Gary, Indiana around his factory

investment banker extraordinaire and founding father of Federal Reserve Bank

meat processing monopoly and inventor of refrigerated rail car

meat packing giant in Chicago; plants were the basis of descriptions in Upton Sinclair's "The Jungle" (novel about the meat packing industry horrors)

tobacco king of North Carolina - American Tobacco Company; like many great monopolists, guilt/sincere commitment drove him to give away millions later in life to Duke University

investment banker and entrepreneur; early aluminum production; later the longest serving Secretary of the Treasury

money given back to large railroad shippers to keep their business; largely in response to the 2 tiered rates system that benefitted larger shipper's over small farmers; when criticism got intense the railroads went to a behind-the-scenes rebate system, all of those eventually outlawed by the Interstate Commerce Act of 1887 and Elkins Act of 1903

passed with intent of giving the government the power to regulate or breakup large trusts; big businesses, through the politicians they controlled, managed to get a law with so many loopholes that it was difficult to use it to break up trusts and monopolies; in the end, it was used to try to break up the Unions with the excuse unions were "labor trusts" organized to extract demands from business owners

passed to outlaw long haul vs. short haul rates (cheaper for long haul) and sliding rates for small shippers vs. large shippers; ICC was set up to monitor the law and charge the railroads who violated the law

another form of monopolistic behavior; instead of creating an outright monopoly, holding companies would buy up large blocks of company stocks until they held a majority, at which time they would try to run the company from behind the scenes. If a holding company did this with a number of firms within an industry then they could force price fixing and other trust/monopolistic behaviors from behind the scenes